Australia's central bank keeps interest rates unchanged for now, but warns that more tightening may be required to tackle inflation.
The Reserve Bank of Australia (RBA) left its cash rate at 4.10%, its highest level in 11 years, but emphasized that it needs more time to evaluate the impact of previous rate hikes before making any further decisions. The RBA has raised rates by 400 basis points since May last year in an aggressive tightening cycle to control inflation. Economists were split on whether the RBA would hold or hike rates.
The Australian dollar dipped initially but has since rebounded, with traders still anticipating at least one more hike in the current cycle.
The RBA Governor Philip Lowe acknowledged uncertainties around household consumption and the global economy and warned that further tightening may be needed as inflation is still too high.
